This beaten-down mall REIT is proving that it can survive -- and even thrive -- despite the wave of bankruptcies sweeping through the retail sector.
News & Analysis: Pennsylvania REIT
The high-yield dividend stock is in the midst of a major turnaround.
Investors are treating PREIT like it's about to be devastated by the retail apocalypse, but its efforts to drive more traffic to its malls are already bearing fruit.
Investors have driven Pennsylvania Real Estate Investment Trust's dividend yield to an incredibly high level out of fear that FFO will continue declining. Here's what Mr. Market is missing.
PEI earnings call for the period ending December 31, 2018.
The East Coast-focused mall REIT expects a sharp decline in funds from operations this year, but not due to any deterioration in its core business.
Sears and Kmart may not have a long-term future, but that's OK for PREIT and Seritage Growth Properties, as long as the struggling retail chains can limp on for another two years or so.
The leading department store chain and a regional mall owner are both high-yield dividend stocks with lots of potential for capital appreciation.
PREIT stock retreated after its recent earnings report, driving its yield up to more than 9%. Yet the stock is poised to deliver big gains for investors over the next few years.
Pennsylvania Real Estate Investment Trust has been working for years to reduce its dependence on Sears as an anchor tenant.